Published on Tuesday, May 21, 2013 by NADCO
Contact: Daniel Son – 202.822-1207
Fort Bragg, NC – The National Association of Development Companies (NADCO) is proud to join the Small Business Administration at Fort Bragg today in announcing a nationwide lending initiative for veterans.
NADCO unveiled its own veteran lending initiative, VetLoan Advantage, at its Annual Meeting in San Diego just last week (San Diego Union-Tribune report and video here). VetLoan Advantage, which will complement the SBA’s efforts, will offer discounts and other rebates on commercial real estate and working capital SBA loans. This initiative has been operational in California thus far and has helped many veterans in that state.
Mike Owen, of CDC Small Business Finance in San Diego, said: “We have offered SBA loans to veterans for years and this just gives us another angle to give them an advantage as they return home. Bringing them back into the mainstream, getting businesses and the economy going is a priority for us.”
The SBA’s initiative is part of their Operation Boots to Business which is a multi-phased approach to help veterans transition back to civilian life as business owners.
Beth Solomon, NADCO President and CEO, who has been spearheading this lending effort said: “It’s vital for lending institutions to step forward and help veterans make the transition, especially because capital access is a problem for all small businesses, but an added problem for veterans who already have challenges transitioning back into the civilian economy. We want to equip and empower our brave and extremely capable men and women to pursue the American Dream and create the jobs our country needs.”
It is NADCO’s goal to have 40% of Certified Development Companies participate in the delivery of VetLoan Advantage discounts that represent a value from $3,000 to $20,000 in direct savings to the qualified veteran loan applicant. The VetLoan Advantage is a voluntary program created in partnership with the Small Business Administration’s efforts to increase SBA 504 loans to veterans by 5% per year for the next five years.
ABOUT THE SBA’s 504 LOAN INITIATIVE
The 504 loan initiative is a self-funded long-term financing tool at no cost to taxpayers providing small businesses with long-term, fixed-rate loans with down payments as low as 10%. Certified Development Companies (CDC) work with the SBA and private sector lenders to provide financing to small businesses under the 504 loan program.
ABOUT VETLOAN ADVANTAGE
Veterans are eligible to take advantage of a cash rebate up to $3,000 for every SBA 504 loan funded to help offset their loan expenses, including appraisal and environmental reports.
The National Association of Development Companies (NADCO) is the trade association of Certified Development Companies (CDCs) – nonprofit companies that have been certified by the Small Business Administration (SBA) to provide financing for small businesses under the SBA 504 Program. NADCO represents nearly 270 CDCs, serving all 50 states. In 2012, the industry provided $6 billion to nearly 10,000 U.S. small businesses.
Click Here to find out more about SEED’s SBA 504 Program